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Question 3: (20 points). There are two assets in the economy. The vector of returns of assets is given by: The vector of weights is
Question 3: (20 points). There are two assets in the economy. The vector of returns of assets is given by: The vector of weights is given by: The variance-covariance matrix is: a) Using matrix notation, compute expected returns of your portfolio? b) Using matrix notation, compute volatility of your portfolio? c) Compute Sharpe ratio if risk-free rate rf=0.02
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